Commercial Dispute – Recovery of Payments – Appeal against Commercial Court’s decree ordering appellant to pay ₹8,49,385 with 18% p.a. interest from the date of suit filing for goods supplied to appellant – Dispute involves recovery of payments for 2500 T-shirts supplied under invoice dated 30.06.2018 (Ex.PW-1/2A) – Appellant challenges correctness of transactions, claims of defective goods, and pre-suit interest calculation under MSMED Act [Paras 1-40]

Defective Goods Claim – Appellant contends goods were defective and returned; however, Commercial Court finds only a portion (22 T-shirts) were disputed regarding quality – No full return was executed, and emails indicate ongoing discussions on quality but no complete denial of receipt [Paras 12-14, 32-33]

Interest Calculation under MSMED Act – Appellant disputes the entitlement to 18% p.a. pre-suit interest, alleging non-establishment of respondent’s MSMED status and lack of notice on interest penalty – Commercial Court finds sufficient notice and basis under MSMED Act despite appellant’s denial – Upholds interest claim as per Act’s provisions [Paras 36-39]

Judgment Assessment – Commercial Court found that despite discrepancies in transaction recording, evidence (ledger entries and emails) confirmed ongoing business transactions and non-payment specific to the challenged invoice – Ledger review indicated non-payment for the goods received; thus, financial claims by respondent were justified [Paras 17-20, 24-29]

Decision – High Court upholds Commercial Court’s judgment, dismissing the appeal, affirming respondent’s claim on principal and interest amounts due under provided invoices – Confirms legal and factual basis for the original decision, including the appropriateness of invoking MSMED Act provisions for interest calculation [Paras 38-40]

Constitutional Law - Article 226 - Writ of Certiorarified Mandamus - Nativity Certificate - Minor petitioner represented by his natural guardian applied for a Nativity Certificate to pursue higher studies in Tamil Nadu - Application rejected by the Zonal Deputy Tahsildar on grounds of non-residence and birth outside the state - High Court quashes the order and directs issuance of the Nativity Certificate - Held, rejection of application based on birthplace and current residence contrary to established precedents and principles of domicile - Authorities directed to issue Nativity Certificate within seven days. [Paras 1-5]

Eligibility for Nativity Certificate - Analysis - Held, birthplace and current residence outside Tamil Nadu not sole determinants of nativity - Petitioner's parents, being natives of Tamil Nadu with roots traceable to the state, establish eligibility for Nativity Certificate - Authorities' denial based on misinterpretation of criteria and lack of consideration of relevant factors. [Para 4]

Decision - Issuance of Nativity Certificate - High Court quashes impugned order and directs Zonal Deputy Tahsildar to issue the Nativity Certificate within a specified timeframe - Authorities' refusal deemed incorrect and contrary to judicial precedents. [Para 5]

Industrial Disputes Act, 1947 – Section 10(1)(c) – Reference to Labour Court – Principle of Res Judicata – Applicability – High Court examined the Labour Court's decision, which declined the petitioner’s reinstatement claim based on res judicata, as previous matters had been adjudicated by the Central Administrative Tribunal (CAT) and the Central Government Industrial Tribunal (CGIT-LC). The High Court found that the principle of res judicata was incorrectly applied since the petitioner was not a Central Government employee, invalidating prior decisions of the CAT and CGIT-LC. The matter required adjudication on merits regarding the termination's legality under the Industrial Disputes Act. The impugned award was set aside, and the case was remanded for fresh adjudication by the Labour Court [Paras 1-25].

Jurisdiction – Central Administrative Tribunal (CAT) and Labour Courts – Inherent Lack of Jurisdiction – High Court observed that the CAT and CGIT-LC decisions regarding the petitioner’s employment status were coram non judice (without jurisdiction). The CAT’s earlier decision was deemed a nullity as the Supreme Court’s ruling in R.R. Pillai clarified that Unit Run Canteens’ employees are not Central Government employees. Consequently, CAT's decision lacked jurisdiction, necessitating proper legal remedy under the Industrial Disputes Act, 1947 [Paras 9-16, 22-23].

Delay in Legal Remedy – Section 14 of the Limitation Act, 1963 – The Court acknowledged the petitioner’s prolonged legal battle spanning over 20 years and protected her right to pursue a remedy under Section 14 of the Limitation Act. The petitioner had approached various forums under a bona fide belief of their jurisdiction, thus excluding the time spent in such proceedings from the limitation period [Paras 19-21].

Decision – Revival of Reference – Expeditious Adjudication Ordered – The High Court allowed the writ petition, setting aside the Labour Court’s award and ordering the revival of the reference for fresh adjudication. The Court directed the parties to appear before the Labour Court on a specified date and mandated a decision within one year to mitigate further delays and alleviate the petitioner’s prolonged suffering [Paras 24-26].

Income Tax Act, 1961 – Sections 132, 153A, 153C – Invalid Search and Seizure Proceedings – Quashing of Notices and Assessment Orders - Court examined the validity of search and seizure proceedings and subsequent assessment orders under the Income Tax Act, 1961 – Petitioner challenged the initiation of proceedings, search, and assessment order, asserting lack of authorization and procedural violations – Court held that without proper authorization and adherence to the prescribed procedure under Section 153C, the proceedings initiated under Section 153A were invalid and unjustified – Based on the evidence and precedents, the Court quashed the notices and assessment orders [Paras 1-36].

Income Tax – Search and Seizure – Procedural Compliance – Requirement of Authorization – Invalid Panchnama - High Court clarified that mere mention of a company’s name in a panchnama does not equate to authorization for a search under Section 132 – Reiterated the principle that procedural compliance is mandatory, and deviations render proceedings void – Emphasized the necessity of following Section 153C when incriminating materials of third parties are found during a search – Court found lack of compliance and quashed the assessment proceedings [Paras 25-30].

Evidence Law – Admissibility of Electronic Evidence – Section 65B of Indian Evidence Act – Petitioner contended that materials obtained from the cloning of a laptop were inadmissible due to non-compliance with Section 65B of the Indian Evidence Act – Court considered the arguments but primarily focused on procedural lapses under the Income Tax Act to quash the proceedings [Para 12].

Decision – Quashing of Notices and Orders – Held – The writ petition is allowed, notices dated 05.01.2018, and assessment orders and demand notices dated 07.02.2024 are quashed and set aside as nonest due to procedural violations and lack of jurisdiction. All pending applications stand disposed of, with no costs awarded. [Paras 35-36]

Bail in NDPS Cases – Prolonged Pre-Trial Detention – The court addressed the issue of prolonged pre-trial detention for the petitioners, emphasizing that they had been in custody for more than three years (or approximately two and a half years for some) without significant progress in their trials. The court highlighted that such extended detention, without the completion of trial, violates the fundamental right to a speedy trial under Article 21 of the Constitution​​.

Delay in Trial – Procedural Difficulties – The court acknowledged that the delay in the trial was primarily due to procedural difficulties, such as the inability to produce the accused from various jails and the theft of case samples. These factors contributed to the lack of examination of prosecution witnesses despite charges being framed over a year prior​​.

Non-Admissibility of Disclosure Statements – The court noted that most petitioners were nominated based on the disclosure statements of co-accused, which are not admissible as evidence under the NDPS Act, as per the Supreme Court's ruling in Tofan Singh v. State of Tamil Nadu​​.

Comparative Analysis and Parity – The court considered the grant of bail to a similarly placed co-accused (Avninder Singh @ Shanty) who was released on bail under similar circumstances. This precedent was used to argue for parity in granting bail to the current petitioners​​.

Section 37 NDPS Act – Application of Bail Conditions – The court referred to various Supreme Court judgments which highlighted that prolonged detention without trial and procedural delays could override the strict conditions imposed under Section 37 of the NDPS Act, thus warranting bail​​.

Decision- All six petitions were allowed. The petitioners were granted regular bail, subject to furnishing bail bonds/surety to the satisfaction of the trial court/Duty Magistrate concerned, if not required in any other case. The court specified that the observations made were for the purpose of deciding the bail petitions and not on the merits of the cases​​.

Negotiable Instruments Act – Quashing of Complaint – Petitioner sought quashing of complaint under Section 138 NI Act and proceedings against him – Allegation of cheque dishonor issued by respondent No. 3 from personal account, not from company’s account – High Court held petitioner could not be held liable as cheque was not issued by him or company – No vicarious liability under Section 138 NI Act without drawer’s liability – Complaint and proceedings quashed against petitioner [Paras 1-14].

Issuance of Cheque – Liability – Admitted fact that cheque was issued by respondent No. 3 from his personal account – Petitioner ceased to be a director of the company before issuance of cheque – No liability under Section 138 NI Act on petitioner as non-drawer [Paras 5-12].

Section 141 of NI Act – Vicarious Liability – Not applicable to petitioner – Cheque not issued by company, no liability can be fastened on petitioner as per Section 138 read with Section 141 NI Act – High Court emphasized conditions precedent for invoking Section 138 NI Act [Paras 9-13].

Decision – Petition Allowed – Complaint and proceedings quashed against petitioner – No legal basis to proceed against petitioner for cheque dishonor issued by another individual from personal account [Para 13-14].

Criminal Procedure – Quashing of FIR – Petitioner, a neighbor in a land dispute, alleged to have been maliciously implicated in the criminal case – Contention that dispute is civil in nature, lacking ingredients of offences under SC/ST (PoA) Act – Reliance on Supreme Court judgments emphasizing scrutiny of allegations for malicious prosecution [Paras 1-4].

SC/ST (PoA) Act – Allegations of Harassment – Respondent, a member of Scheduled Caste, claimed harassment by petitioner preventing construction on his land – Court noted absence of land dispute, deemed it a case of untouchability – Offence under SC/ST (PoA) Act held to be made out [Paras 5-7].

Decision – Writ Petition Dismissed – Held – Criminal proceedings not quashed, as allegations of harassment on account of untouchability substantiated – Dismissal based on acknowledgment of discriminatory practices against SC/ST individuals [Para 7].

Criminal Law – Circumstantial Evidence – Conviction of appellants based on circumstantial evidence in the murder case of Abhijit Pal and Moumita Das – Trial court awarded death sentence to Raju Das and life imprisonment to Kundan Das, Guddu, and Bablu – Appellate court evaluates the reliability of evidence and adherence to legal standards [Paras 1-64].

Confession – Admissibility – Confessional statements made to police officers deemed inadmissible under Section 25 of the Indian Evidence Act – No independent corroboration of confession – Court underscores the necessity of verifying the voluntariness and authenticity of confessions [Paras 43-45].

Recovery of Evidence – Section 27 of Indian Evidence Act – Examination of recovered items linked to the deceased – Doubts on the credibility of recoveries due to lack of independent witnesses and contradictory statements by prosecution witnesses – Court emphasizes caution in relying on recovery evidence [Paras 47-52].

Suspicion vs. Proof – Legal Principle – Court reaffirms that strong suspicion cannot replace the requirement of legal proof – Prosecution’s failure to conclusively prove the chain of circumstances – Benefit of doubt extended to the accused [Paras 55-58].

Decision – Appeals Allowed – Held – Convictions and sentences set aside – Appellants acquitted of charges under Sections 302, 201, 392, 411, and 120B IPC – Appellants to be released immediately unless required in other cases – Compliance with Section 437A Cr.P.C. mandated [Paras 59-64].
 

Condonation of Delay – Interlocutory Application filed for condonation of delay of 239 days in filing the appeal – Appellant claimed financial hardship prevented timely filing – Court found delay unintentional and condoned it [Paras 1-6].

Disciplinary Action – Dismissal from Service – Appellant dismissed for misappropriating funds from deceased/inoperative accounts – Charges included unauthorized crediting of pension funds to own and relatives’ accounts, and unauthorized withdrawals from inoperative accounts – Alleged financial crisis as reason for delay – Court noted serious breach of trust and upheld the disciplinary actions [Paras 7-14].

Judicial Review – Proportionality of Punishment – Cited Supreme Court precedents on interference with disproportionate punishment – Reference to cases like Ranjit Thakur v. Union of India and Chairman and Managing Director, United Commercial Bank v. P.C. Kakkar – Held that the punishment of dismissal was appropriate given the severity of misconduct – Importance of maintaining public trust in financial institutions emphasized – Court rejected arguments for leniency, highlighting the need for higher standards of integrity in banking [Paras 18-36].

Legal Precedents – Reference to various judgments to establish the standards of judicial review and proportionality of punishment – Cited cases including Bhagat Ram v. State of Himachal Pradesh and Dev Singh v. Punjab Tourism Development Corporation Ltd. To assert the need for punishment to match the gravity of misconduct [Paras 19-25, 37-40].

Decision – Appeal Dismissed – Held – No error in Single Judge’s decision – Appellant’s dismissal upheld due to gravity of financial misconduct and breach of trust – Court emphasized that misappropriation of funds by bank employees undermines public confidence and warrants severe penalties – No grounds for showing leniency in punishment as it would undermine the disciplinary framework of financial institutions [Paras 41-42].